Life After Bankruptcy

You Financial Future

Your debt has been eliminated and you are now on the path to a rebuild credit for a solid financial future. However, the financial recovery process after bankruptcy requires effort and lots of planning. There are several things to consider when developing your financial plan after bankruptcy. First, evaluate what part of your financial past could be improved to avoid getting into overwhelming debt again. Credit is a major part of our economy and is meant to be a tool of assistance for those who manage their spending properly. Take a look at your spending habits to identify how you ended up in bankruptcy and develop a plan to manage your money differently in the future.

After you have eliminated or reorganized your debt through bankruptcy, it will be more difficult to obtain loans and lines of credit than before you filed for bankruptcy. This provides you with the opportunity to learn to “live on cash” and rebuild credit. You might find that you have to make adjustments to your lifestyle and spending habits. You may not be able to have that expensive dinner out on the town or stay in the nicest hotel, but a home-cooked steak dinner outside on your patio in the springtime can be enjoyable for the whole family. The point is, you can take back control of your financial life.

Find/Maintain a job

In order to reclaim your financial future, you will need a sufficient income. Having a stable income will allow you to stick to your budget and keep track of your bills each month. Your monthly expenses must be paid on time, each month. If your income is not enough to cover your basic living expenses (home, utilities, gas, food etc), you may need to consider changing to a higher paying job or obtaining a second job. However, avoid too many changes in jobs as this often reflects poorly in your employment history. A stable employment history also shows creditors that you are reliable.

Pay your bills

This is your biggest opportunity to turn your financial life around and rebuild your credit history. You may not be able to obtain a line of credit right away but, you do have the income necessary to pay for you basic expenses. Paying bills late or not at all is the worst action you can take after bankruptcy. You may need to consider adjustments in your expenses. For example, if you cannot afford your home or apartment payment, sell your home or move to a cheaper apartment. It is imperative you show creditors you can pay your bills on time each month. Creditors look for stability in making payments before offering lines of credit to individuals. Keep track of your bill due dates to ensure you pay on time and improve your payment history and credit standing.

Track your spending

One of the biggest mistakes people make in managing their money is failure to track each dollar that they spend. It is easy in today’s economy with check cards, debit and ATM cards to mismanage your money. If you don’t already have one, open a checking and savings account at your nearest bank. It is important that you keep a positive balance in your accounts to reflect positively in your credit history. One to make sure you keep a positive balance is to request a check register in order to keep track of your credits and debits to your account. Online tools, like mint.com, make it easy for people to track their spending by categories (e.g. medical, auto, utilities etc) and set budgets for those categories. Keeping a consistent, positive balance in your accounts will show creditors you have reliable cash flow.

Rebuild your credit

After your bankruptcy discharge, the responsibility to rebuilding your credit is in your hands. Once you have established stable income and reliability in paying your bills, consider applying for a low-limit credit card. The interest rates on cards you may qualify for will be higher than desired, so avoid applying for a card with a high spending limit. The goal is to obtain a card that you can afford to pay the monthly amounts. It is wise to avoid purchasing any big or costly items. The best way to rebuild credit is to maintain a small balance, making regular payments over a period of time. People often think the best way to improve your credit history is to keep a card open with no balance. In fact, keeping a manageable balance that is paid on time over a period of several years shows reliability and improves your credit standing.

Everybody I have encountered and meet with at Lee Law Firm has been positive and encouraging. And that is exactly what I needed because nobody looks forward to going through bankruptcy. The staff was honest about my situation and put my mind at ease about the process, and for the first time in months I was able to relax and focus…

on getting out of my financial situation with hope of starting over. I would recommend Lee Law firm of friends and family because I feel like they have my best interest at heart.

-- Brad H

Kimberly and I had our 341 meeting today and it literally lasted perhaps 1.5 to 2 minutes and we were asked only 5 or so questions. We didn’t even have time to sign in before the Trustee said, meeting completed and had to sign in over at the side of the room so he could continue with others. I am personally taking this to mean all our ducks were in a…

row and you are all part of that. I know it’s just your job but there are those who do just their job and those who do their job very well and you all are included in the later. So a big thank you to the entire Christopher Lee law firm and especially to Jon, Heena, Erin and Rachel. I know we aren’t completely finished yet but this milestone seemed to us as one of the biggest after making our initial decision.

I will add that one of the obvious local attorneys at the 341 Meeting was quite interested in a face he didn’t recognize, Heena’s and asked where she was from. Heena told him the firm and stated she worked mostly in the Northern District. When asked why she was here in the Southern District her answer was so matter of fact “for MY clients”. That statement gave us both an even greater sense of peace knowing she looked at us in the manner of “her clients” not her firm’s clients but “my clients”. That in itself speaks volumes about the amount of caring, compassion and respect we have gotten.

Thank you very much.

-- Daniel and Kimberly

When I first got your foreclosure letter my wife and I were very upset and didn’t know where to turn. In addition to your foreclosure letter we got a million other letters in the mail as well. You letter stood out to me and I wanted to take you up on the offer to do a FREE forbearance. I was skeptical because I hear so much about foreclosure scams…

and people being taking advantage of when they are facing this crisis. However, I took a chance and called your office. I spoke with Sherri to schedule the appointment just like it mentioned in the letter. She was so friendly and helpful and set me up an appointment.

I came into the office and everyone answered my questions and prepared the free forbearance offer as promised. I paid nothing for the service and to my great surprise the offer was accepted within two days of my initial appointment. I decided to decline the offer to go forward with the forbearance because in my circumstance a chapter 13 bankruptcy turned out to be a better option based on my financial situation. I felt good about retaining the firm because they earned my trust and did what they said they would do. Thank you so much and I will recommend you to anyone else having the same problem that I had.

-- Donnie H

My appointment today was very good and informative. I really do appreciate the time and effort put to helping me get back onto a new financial path.

-- Fernando H

They ensured that my visit was NOT as scary as I had anticipated. I was VERY nervous as I drove in relentless traffic to arrive at my appointment 15 minutes late. They were not in the least put off by my tardiness. On the contrary, they were most helpful at putting me at ease an answering my incessant questions about bankruptcy…

(this being my first experience with it). They patiently walked me through each question and document, providing answers and helping me fill in areas where the answer was not exactly what the question asked for. The meeting was handled professionally and with the utmost consideration of my current situation. If you have a hall of fame wall, put their pictures on it. If not, get one so these ladies can be recognized.

-- Larry L

A very great experience not knowing what to expect. It wasn’t as bad as we thought it would be. We feel relief now, knowing that we have a true expert staff to help us through our situation.

-- Reginald

Thank you for a FRESH START!!! The thought of bankruptcy did not occur until I asked my heavenly Father for help, instead of trying to fight the battle alone. The battle is not mine, but it belongs to the Lord. He is the source of my strength, and He placed you in my path to see me through.

I cannot extend enough gratitude to you and your staff for a smoothly run process. Thank You, Thank You, Thank You!!!

Merry Christmas to all of you and blessings for a healthy, wealthy, and happy New Year!!!